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    stayhomemom's Avatar
    stayhomemom Posts: 2, Reputation: 1
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    #1

    Oct 25, 2007, 03:04 PM
    Royalties journal entry
    Here is my question:

    Paid royalties due on first weeks sales ( $800 sales of first week)

    Is this correct?

    Royalities divideds $40
    Cash $40


    THANKS!!
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Oct 25, 2007, 11:28 PM
    Assuming that on $800 of sales you must pay $40 in royalties

    Dr. Royalties Expense 40
    Cr. Cash 40

    You called it royalties dividends….that is fine, you can call the account whatever you want…as long as you know the account is an expense account.
    stayhomemom's Avatar
    stayhomemom Posts: 2, Reputation: 1
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    #3

    Oct 26, 2007, 02:17 PM
    Thank you very much for your quick response!!
    kpajuelas's Avatar
    kpajuelas Posts: 1, Reputation: 1
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    #4

    Mar 20, 2013, 06:46 PM
    Hi!

    I am due to pay my 1st installment of royalty by April, how will I record it?
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